Real Estate Regulatory Bill: How will it protect you
The Bill envisages to bring forth a higher level of transparency and accountability from the developer community. It will protect end user's interest.
June 05, 2013 / 02:17 PM IST
The Cabinet on Tuesday approved Real Estate Regulatory Bill that is expected to bring about a sea change in the business practice of real estate developers. Implementation of the same will take time as it involves land and land is a state subject. If you are looking to buy a property, here's how you will benefit when the Bill becomes a law:
1. Developers can launch projects only after getting all relevant clearances.
2. Developers cannot offer any pre-launch sales without the regulatory approvals.
3. Authorities have 15 days to approve or reject a project.
4. Construction to begin only after the developer's website has displayed all details of the project including receipt of clearances.
5. The buyers are entitled to full refund with interest in case of delay in projects.
6. Realty developers will have to maintain a separate bank account for every project to ensure funds raised for one project is not diverted.
7. It will be mandatory to keep 70% of the buyers’ funds in a separate bank account to ensure timely completion of projects.
8. Developers cannot take more than 10% of the advance from buyers without a written agreement.
9. Builders will have to use photographs of actual site for advertisements purpose. Failure to do so will attract a penalty which may be up to 10 percent of the project cost.
10. Repeat offenders may land in jail.